Financial Consolidation: Key Insights from the AMCF's First National Survey

In the opening remarks, Zineb Guennouni, Executive Director of Development at the Casablanca Stock Exchange, emphasized that the strength of a market relies not primarily on technology or regulations, but on the quality of financial information. Consolidation, often viewed as a technical subject, is actually central to transparency, visibility, and credibility in the market. The widespread adoption of IFRS among listed companies and the gradual alignment with international standards reflect a maturing economy and improving governance, while also creating new requirements for issuers, both listed and unlisted. Khalid Raji, President of the AMCF, stated that consolidation is "no longer just a technical exercise," but a strategic lever in a context of evolving standards, expanding groups, and increasing demands for non-financial reporting. The survey, based on a questionnaire of 53 questions and qualitative interviews, aims to establish a structured overview of practices, identify operational challenges, and illuminate needs for skills, tools, and support. The detailed results were presented by Anass Radi, Vice President of the AMCF, and Siham Akla, a member of the Association, who outlined the methodology, observed trends, and key findings from the field. Among the major insights from the survey, 51 groups surveyed are predominantly medium-sized, with 57% employing between 1,000 and 10,000 employees. Morocco remains their primary area of operation, with notable expansion towards Sub-Saharan Africa and Europe. 40% are owned by public institutions, while only 31% are listed. For 29% of respondents, consolidation is primarily a legal compliance exercise, with transparency towards investors being a secondary concern. Normatively, the landscape is balanced: 50% of groups apply IFRS, while 48% adhere to Moroccan CNC standards; only a few groups manage a dual framework. A significant finding relates to the organization of the function. In Morocco, 71% of groups internalize consolidation, motivated by the need to control the information production chain and confidentiality requirements, especially in unlisted family groups. 20% fully outsource this function due to a lack of resources or tools, while 10% adopt a mixed model, with an internal core and occasional external expertise. Among those who internalize, 67% have a dedicated entity, with over 72% reporting to the financial management, rarely directly to general management (5%). However, this structure conceals underinvestment in human capital. Most consolidation departments consist of one to three employees, predominantly junior profiles (recent graduates or 2-4 years of experience). Consolidators with 10 to 20 years of experience are rare, amid high turnover linked to the technical nature of the job and the attractiveness of foreign markets for these profiles. Regarding closing rhythms, practices remain heterogeneous: 33% of groups consolidate quarterly, 29% semi-annually, and 20% annually, with a minority approaching monthly frequency. Deadlines often exceed 90 days, particularly because 69% of publication documents are still produced manually. However, positive signals are emerging: 20% of groups perform pre-closing consolidation, and 47% conduct forecast consolidation, sometimes led directly by consolidation teams, enhancing their role as partners to top management. Furthermore, 69% of consolidated accounts are actively used by leaders for management purposes, indicating that consolidation is gradually transcending mere regulatory logic. On governance issues, a quarter of the groups lack any formal documentation (consolidation manual, IFRS adjustments). Among the others, manuals are often deemed insufficiently detailed. This gap increases reliance on individuals and weakens the principle of homogenizing practices within the group. Regarding intra-group operations, a significant portion of groups implements regular reconciliations, but the process remains largely manual (Excel files, email exchanges), limiting reliability and closure speed. Information systems exhibit a similar duality: 42% of groups still rely on Excel as their primary consolidation tool, while an equivalent proportion uses specialized solutions (such as SAP BFC). However, 67% lack an interface between the consolidation tool and general accounting, and 92% do not integrate with budgeting planning tools, even as forecast consolidation progresses. This lack of interfacing hinders data reliability and the analytical richness of consolidated accounts. Finally, the survey highlights four priorities for transformation or improvement: deployment of dedicated and integrated tools covering consolidation and reporting; strengthening governance through formalized manuals and procedures; enhancing intra-group processes; and structured investment in team training and engagement from general management. These initiatives are crucial for the market's ability to turn consolidation into a genuine competitive advantage, fostering trust among Moroccan and international investors. In a market where the number of IPOs is increasing and the investor base, both Moroccan and international, is expanding, financial consolidation is definitively moving away from being a shadow profession. The results of this first survey provide benchmarks for groups, regulators, and investors, and outline a roadmap for a consolidation function that is set to become a key driver of credibility and attractiveness in the Moroccan financial market.